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Practice Of Real EstateBrokerage_activitiesMEDIUM

For the Kentucky state portion, how should a candidate analyze an affiliated licensee violates Chapter 324?

Correct Answer

C) The principal broker is not primarily liable unless the broker knew of the violation and did not prevent it

KRS 324.160 limits primary liability of a principal broker absent knowledge and failure to prevent. Source basis: KRS 324.117, KRS 324.160, and 201 KAR 11:121, Kentucky Legislative Research Commission official statutes/regulations: advertising, supervision, brokerage records, document delivery, affiliation, compensation, agency, and improper conduct; checked 2026-04-30.

Answer Options
A
The principal broker has no responsibility once a sales associate handles the file.
B
The rule applies only to commercial transactions.
C
The principal broker is not primarily liable unless the broker knew of the violation and did not prevent it
D
The conduct is allowed if the transaction later closes successfully.

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Related Topics & Key Terms

Related Topics:

ky.IIIbrokerage_activities

Key Terms:

kentuckyky.IIIbrokerage_activitiesprincipal-liability-knowledge
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